Chapter 1

• Advertising has evolved into a vital communication for consumers that rely on the information from it so they can use it in making purchase decision, and also, for businesses where they rely on it to help them market their products and services.
• The ability of advertising and promotional methods to deliver carefully prepared messages to target audience became a major role in the marketing
• Marketing


  The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives
• Exchange


  When there are two or more parties with something of value to one another, a desire and ability to give up that something to the other party, a way to communicate with each other
• Advertising and promotion play an important role in the exchange process by informing customers to the business' products and services and convincing them to its ability to satisfy their needs and wants.
• Value


  The customer's perception of all of the benefits of a product or service weighed against to all the costs of acquiring and consuming it
• Types of value


  • Functional (the performance of the product)
  • Experiential (what it feels like to use the product)
  • Psychological (feelings such as self-esteem or status as the result from owning the particular product)
• 4Ps

  Product, Price, Place, and Promotion
• The basic task of marketing is combining these elements to facilitate the potential exchange with customers in the marketplace.
• Integrated Marketing Communications (IMC)


  A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines
• Integrated marketing communications focus on the process of using all forms of promotion to achieve maximum communication impact.
• Brand identity


  A combination of many factors, including the name, logo, symbols, design, packaging, and performance of a product or service as well as the image or type of associations that comes to mind when consumers think about the brand
• A successful integrated marketing communication program requires that marketers find the right combination of communication tools and techniques, define their role and the extent to which they can or should be used, and coordinate their use.
• Promotion


  The coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea
• Promotional mix


  The basic tools used to accomplish an organization's communication objectives
• Advertising


  Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor
• Advertising is the best-known and most widely discussed form of promotion because of it pervasiveness.
• Advertising is also a valuable tool for building company or brand identity as it is powerful way to provide consumers with information as well as to influence their perceptions.
• Types of advertising to consumer markets

  • National advertising
  • Retail/Local advertising
  • Primary-demand advertising
  • Selective-demand advertising
• Types of advertising to business and professional markets

  • Business-to-business advertising
  • Professional advertising
  • Trade advertising
• Direct marketing


  In which organization communicate directly with target customers to generate a response and/or a transaction
• Direct-response advertising


  A product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer
• Digital/Internet marketing


  Interactive media allow for a two-way flow of communication whereby users can participate in and modify the form and content of the information they receive in a real-time
• Internet marketing is also known as social media marketing where social media refers to online means of communication and interactions among people that are used to create, share, and exchange content such as information, insights, experiences, perspectives, and even media itself.
• Sales promotion


  Marketing activities that provide extra value or incentives to the sales force, distributors, or consumers and can stimulate immediate sales
• Categories of sales promotion

  • Consumer-oriented sales promotion
  • Trade-oriented sales promotion
• Publicity


  No personal communications regarding an organization, product, service or idea that is not directly paid for or run under identified sponsorship
• Public relations


  The management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest and executes a program of action to earn public understanding and acceptance
• Personal selling


  A form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company's product or service or to act on an idea
• Personal selling involves more immediate and precise feedback because of the impact of the sales presentation can be generally be assessed from the customer's reactions.
• Five basic elements of a marketing plan

  • Detailed situation analysis
  • Specific marketing objectives
  • Marketing strategy and program
  • Program for implementing the marketing strategy
  • Process of monitoring and evaluating performance
• Internal analysis


  Assesses relevant areas involving the product/service offerings and the firm itself
• External analysis


  Focuses on factors such as characteristics of the firm's customers, market segments, positioning strategies and competitors
• The non personal aspect means that the advertising involves mass media (TV, radio, magazines, newspapers) that can transmit a message to large groups of individuals at the same time.
• Media advertising is still the most cost-effective way to reach large numbers of consumers with an advertising message.
• Television is an excellent way for marketers to reach mass markets.
• National Advertising

  Advertising done by large companies on a nationwide basis or in most regions of the country. The goal is to inform and remind consumers of the company or brand and its features, benefits, advantages, or uses and to create or reinforce its image so that consumers will be subject-to purchase it.
• Retail/Local Advertising

  Advertising done by retailers or local merchants to encourage consumers to shop at a specific store, use a local service, or patronize a particular establishment. Retailers are concerned with building store traffic, so their promotions take the form of direct-action advertising designed to produce immediate store traffic and sales.
• Primary-Demand advertising is designed to stimulate

  demand for the general product class or entire industry. It is often used as part of a promotional strategy to help an ew product gain market acceptance.
• Selective-Demand advertising focuses on creating demand for a specific company's brands. It is concerned with stimulating selective demand and emphasizes reasons for purchasing a particular brand.